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Monday, December 21, 2015

Eng Kah boosts output

GEORGE TOWN: Contract manufacturer Eng Kah Corp Bhd is ramping up the monthly production of its cosmetic, perfumery and personal care products worth RM7mil by mid-2016 from about RM5mil presently.

Group managing director Ewe Eng Kah said the group’s associate company Atika Beauty Manufacturing Sdn Bhd and wholly-owned subsidiary EK Universal Marketing Sdn Bhd would be the key drivers of growth in 2016.

“Atika is involved in the manufacturing of halal cosmetic products. We are now renovating the production facility in Nilai, Negri Sembilan, which should be operational by mid-2016. Atika is investing an initial RM4mil for the project.

“We are negotiating with a Europe-based multinational corporation to secure a large contract to produce halal-certified coloured cosmetic products under its brandname,” he told StarBiz.

According to Ewe, the business and growth opportunities in the halal cosmetic market is vast. “In 2008, the halal skincare market is valued at US$580mil and it has exceeded US$2bil in 2010.”

“The annual world increase is 12% over the last five years, rising to 19% in the Persian Gulf countries,” he added.

According to Ewe, among the Gulf countries, Saudi Arabia is the biggest market for consumption.

“In 2010, sales of beauty products reached almost US$397mil, and in 2015 more than US$500mil.

“The buying power is increasing among the young Muslim consumers, who have shown significant interest in personal care products that respect their tradition and religion,” he added.

According to Thomson Reuters’ Islamic capital markets global head Sayd Farook, the global Muslim spending on halal cosmetic products is expected to reach US$73bil by 2019 from US$46bil in 2013, making up more than 8.2% of the global expenditure.

According to a recent Technavio report, the global halal cosmetics is expected to increase to US$45bil by 2020 from US$23.4bil in 2015, riding on a compounded annual growth rate of 14.3%.

On EK Universal, Ewe said the company specialised in producing and selling unique and impressive souvenir products that were printed with three dimensional images of sceneries and landmark places.

“We will be taking part in the Cosmoprof Worldwide Bologna Exhibition in Italy next March. Cosmoprof is an international exhibition event that specialises in promoting cosmetic, perfumery, and personal products,” he said.